Kyber Network: Putting ERC-20 Tokens to Work

What is the main use of ERC-20 tokens as of today? We can make use of them on their various native platforms or trade them on exchanges. But what if we want to use one token to conveniently pay for goods and services across many different platforms? This is currently very challenging, as platforms usually accept only their own native token for payment. One may even have to buy and own hundreds of different tokens in order to use the popular applications.

Kyber Network addresses this problem with its on-chain liquidity protocol, which allows decentralized token swaps to be integrated into any application, thus enabling value exchange to be performed seamlessly between all parties in the ecosystem. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC-20 payments, and financial DApps.

By facilitating trustless and seamless value exchanges for users and applications, Kyber aims to make any token both tradable and usable anywhere, and become the transaction layer for the decentralized economy.

What Kyber enables

Decentralized Token Swaps: Users can conduct decentralized token swaps within different platforms, for example KyberSwap. KyberSwap is the end user retail platform powered by Kyber’s liquidity protocol, which allows users to easily buy or sell a wide range of ERC-20 tokens through a fast, simple and secure process.

Payments: Users can pay for goods and services with any ERC-20 token Kyber supports, while the merchant can receive payment in their desired token.

Decentralized Finance: Index funds and financial DApps can leverage Kyber’s protocol to liquidate or rebalance their portfolio in a seamless, transparent and verifiable way. In addition, exchanges (both centralized and decentralized), traders and arbitrage bots can use the Trading API to leverage the liquidity offered on Kyber to match orders, or to arbitrage for profit.

Reserves

Reserves contribute liquidity to Kyber’s liquidity protocol. Token holders such as fund managers and token teams can easily become reserves by contributing their idle token assets. These tokens become available for use across any platform that taps into the protocol, making them instantly more liquid and widely usable. In return, reserves earn from the spread in every transaction.

Build with Kyber

Kyber has created a Developer Portal with comprehensive documentation for developers to integrate and utilize Kyber’s protocol for a wide range of inter-token use cases for their DApps, wallets, and other platforms.

What’s New?

Kyber recently developed a Permissionless Order Book reserve, allowing both the deployment of token reserves and contribution of liquidity in a permissionless manner. In addition, they created an Automated Market Maker reserve, allowing calculation of conversion rates entirely on-chain, and reducing costs incurred by reserve managers. Along with BitGo and Republic Protocol, Kyber also initiated WBTC (Wrapped Bitcoin), a community-driven initiative to bring Bitcoin liquidity to Ethereum.

KNC Token

Kyber Network Crystal (KNC) is an ERC-20 token and an integral part of Kyber Network.
KNC is the glue that connects different participants in the Kyber Network ecosystem, including both liquidity contributors and the different entities that leverage on the liquidity protocol.

KNC is required by reserve managers to operate and used to pay transactions fees associated with executing trades. KNC is also given to third parties such as DApps, as part of a fee-sharing program for generating trade volume. Kyber charges a small fee in KNC each time any exchange happens on the network, then burns the KNC tokens collected as transaction fees.

Lumi Wallet is happy to announce that our users are now able to store, send, and receive KNC tokens.

In order to open a KNC wallet just tap on the plus icon in the Wallet tab, start typing in the name of the project and choose KNC from the list.

If you want to send KNC to another address, tap on the Send button on the bottom, type in the receiving address, fill in the sum in KNC and the total sum in USD will be shown to you as well. An optimal gas fee will be generated automatically. Tap Confirm, check the details and you’re all set!

If you need to receive KNC, tap on the receive button in your wallet and you’ll be shown your wallet address that you can copy. You can then send the link to the person who is about to send you the funds via messengers or social media.

Lumi users can also check KNC charts and check the price graph at any time period.

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